Strategic Business Plan

Sierra Nusantara Sdn Bhd

(SNSB)

Prepared by Ruhiyati Idayu Abu Talib

COMPANY OVERVIEW

Johor Premium Outlets is a collection of 80 designer

and name brand outlet stores featuring saving of 25%
to 65% every day.
SNSB was established in November 2011

Its currently run 6 (six) stalls at Johor Premium Outlet

at Kulaijaya, Johor

BOARD OF DIRECTORS

MBA, Degree in
Economics,
4 years experience in
retail,Patchi and 2 years
experience in F&B,
Dome Cafe

2010-Present:Managing
Director, Karambunai
2007-2010:CEO,
Iskandar Investment
Berhad
1998-2010: KLCC
Property Sdn Bhd, last
position held as
Managing Director

Founder of Little
Taiwan. Established
since year 2000.
Little Taiwan is a locallyowned QSR (Quick
Service Restaurant).
Currently Little Taiwan
have 9 outlets all over
Malaysia and 1 outlet in
Jakarta, Indonesia

CORPORATE STRUCTURE
MALAYSIAN FLAVOUR

KYUNG JOO EKSPRESS

LITTLE TAIWAN

SIERRA
NUSANTARA
SDN BHD

STEAM KUNG FU
MAGIC CHICKEN RICE

MAGIC WOK

MENU LIST

MARKET ANALYSIS

Additional Market in 2013

Visitors to International Water Theme Park & Hotel

1,000,000

15% of Legoland visitors to visit JPO @ 3million p.a

450,000

MARKET SIZE
Estimated JPO customer per year

Age 15-64 years old

2,572,100

80%
Middle Upper-Upper Middle
2,057,680

80%
Impulsive
1,646,144

90%

1,481,530

COMPETITORS

ACTUAL AND ESTIMATED SALES

MONTH

SALES/UNIT

SALES/RM

DECEMBER 2011

76,835

607,260.75

JANUARY 2012

31,646

255,996.60

FEBRUARY 2012

18,987

152,000.00

MARCH 2012

31,646

250,000.00

APRIL 2012

31,646

250,000.00

MAY 2012

64,353

508,389.58

JUNE 2012

31,646

250,000.00

JULY 2012

76,835

607,000.00

AUGUST 2012

76,835

607,000.00

SEPTEMBER 2012

31,646

250,000.00

OCTOBER 2012

31,646

250,000.00

NOVEMBER 2012

31,646

250,000.00

DECEMBER 2012

76,835

607,000.00

503,720.

3,979,389.58

TOTAL

MANPOWER

10

GROWTH OPPORTUNITIES
Population by 2025
Iskandar Malaysia is estimated to have
1.35 million people or 43% of Johor's
population of 3.17 million. Some 66% of
the population is of working age. Malays
comprise 48.2%; Chinese 35.8%; Indians
9.4% & foreigners 6.6%. One third of the
population is estimated at below 15
years old.

Land Size
Iskandar Malaysia covers a land size of
2,217 sq. km.
3 times the size of Singapore.
48 times the size of Putrajaya.

Under Economic Transformation Plan (Tourism), government is planning to

establish 3 outlets by 2020;
Iskandar Malaysia (to cater to tourist arrivals into Iskandar)
Sepang (to cater for transit passengers, Klang Valley visitors)
Penang (to cater to tourist arrivals in the North)

SWOT ANALYSIS

Strengths

Weaknesses

Vivian has more than 10 years

experience running a successful
food business
Arlida Ariff is a respected
corporate figure in Malaysia and
has handle many big projects
before
SNSB is the biggest tenant for
Food Channel,JPO

Newly established company,

lots of system still need to fine
tune
Tight cash flow, high CAPEX
Marketing effort dependent on
Food Channel and JPO

Opportunities

Threats

Under Iskandar Malaysia,

Legoland, and Hello Kitty
Theme Park are expected to
start operating next year
Genting Master
Development in Kulaijaya
includes a new Water Theme
Park and hotel
Under ETP, another 2
Premium Outlet to be open in
5 years time and we plan to
open there also.

Target market is mostly tourist

from outside Malaysia and with
world economy still recovering,
might not be able to achieve
target.
Food Channel yet to acquire
Halal Certification.

12

RISK AND MITIGATION

RISK DESCRIPTION

STRATEGIC

OPERATION

Marketing dependent on Food Channel and

JPO

System not in place

MITIGATION CONTROL

Aggressive follow up with both party

so that they will step up their
marketing plan.

During slow seasons, to put system

in place

To monitor pricing for raw material

FINANCE

COMPLIANCE

Cash Management

Halal Certification

and pay the supplier by cash for

better pricing
Manpower cost to manage

Food Channel in the process of

applying for the certification.

SET UP COST
SUMMARY
Set Up Cost
MF

AIO

Capital Expenditure
Kitchen Equipment & Exhaust Hood
Exhaust Hood
Kitchen Hood and Instalation
Melanine wares,cutleries holder etc
Kitchen Utensive
Stationary
Uniform
Menu

$
$
$
$
$
$
$
$

RM
24,610.00
600.00
4,238.00
800.20
3,750.00

Total Fit Out Cost

33,998.20 $

47,728.71 $

$
$

35,000.00 $
5,000.00 $

35,000.00 $
5,000.00 $

$
$
$
$
$
$

7,500.00
514.88
300.00
304.00
500.00

7,500.00
514.88
300.00
304.00
500.00

$
$
$
$
$
$
$
$

RM
34,764.00
600.00
3,908.50
4,706.21
3,750.00

MW
$
$
$
$
$
$
$
$

RM
37,450.00
600.00
1,470.35
3,051.79
3,750.00

LT

MCR

$
$
$
$
$
$

RM
31,078.00 $
$
600.00 $
1,470.35 $
8,666.53 $
- $
- $
3,750.00 $

RM
24,870.00
600.00
4,336.00
2,002.31
3,750.00

46,322.14 $

48,838.33 $

45,564.88 $

35,000.00 $
5,000.00 $

35,000.00 $
5,000.00 $

35,000.00
5,000.00 $

$
$
$
$
$
$
$
$

RM
33,376.00
600.00
4,065.00
7,047.33
3,750.00

SKF
$

KJE

TOTAL

35,558.31 $

$
$
$
$
$
$
$
$
$
45,160.88 $

RM
215,744.00
4,200.00
22,036.55
34,940.90
26,250.00
303,171.45

5,000.00 $

$
5,000.00 $

175,000.00
35,000.00

7,500.00
514.88
300.00
304.00
500.00

7,500.00
514.88
300.00
304.00
500.00

$
$
$
$
$
$
$
$

RM
29,596.00
600.00
2,548.35
8,666.53
3,750.00

Initial Consultant & Setting Up Fee

Deposit
Rental
Utilities
Expenses
Grand Opening Charge
Insurances
Documentation Charges
Stamping Fee
MPKU License
Float
Staff Under Training
Hostel

Total $ 83,117.08

$
$
$
$
$
$

$ 96,847.59

$
$
$
$
$
$

7,500.00
514.88
300.00
304.00
500.00

$ 95,441.02

$
$
$
$
$
$

7,500.00
514.88
300.00
304.00
500.00

$ 97,957.21

$
$
$
$
$
$

7,500.00
514.88
300.00
304.00
500.00

$ 94,683.76

$
$
$
$
$
$

$ 49,677.19

$
$
$
$
$
$

$ 59,279.76

$
$
$
$
$
$
$
$

52,500.00
3,604.16
2,100.00
2,128.00
3,500.00
17,311.22
19,837.00

$ 614,151.83

14

OPERATING EXPENSES 2012-2016

Items

2012

2013

2014

2015

2016

1,588,149

1,758,448

1,921,138

2,100,098

2,296,951

Staff Cost

452,000

442,200

486,420

535,062

588,568

Rental & Maintenance

1,059,000

1,164,900

1,281,390

1,409,529

1,550,481

Office Expenses

12,000

13,200

14,520

15,972

17,569

Business Travel

6,000

6,600

7,260

7,986

8,784

Depreciations

43,149

43,149

43,149

43,149

43,149

Finance Payment

16,000

88,399

88,399

88,400

88,400

Total Operating
Expenditure

15

PROJECTED INCOME STATEMENT 2012-2016

Budget FY
2012

Budget FY
2013

Budget FY
2014

Budget FY
2015

Budget FY
2016

SALES

3,979,389

4,377,328

4,815,061

5,296,567

5,826,224

LESS : COST OF SALES

1,392,786

1,532,064

1,685,271

1,853,798

2,039,178

OPERATING GROSS PROFIT

2,586,603

2,845,263

3,129,789

3,442,768

3,787,045

LESS : OPERATING
EXPENDITURES

1,588,149

1,758,448

1,921,138

2,100,098

2,296,951

998,454

1,086,815

1,208,651

1,342,670

1,490,094

NET PROFIT/(LOSS) BEFORE TAX

16

BREAK-EVEN POINT
A) Price Per Unit
7.90
B) Variable Cost per Unit
No.
Item
1. Raw Material
2.

Quantity

Price
1

Total

2.80

2.80

Total Variable Cost

2.80

C) Cost Analysis

1. Price per Unit

RM

7.90

2. Total Fixed Cost

RM

132,345.00

3. Total Variable Cost

RM

2.80

4. Contribution/Unit

RM

5.10

5. Break Even Point/Unit

MYR

25,950.00
207,600
17

PROJECTION OF CASH FLOW

Cash From Operating Activities
Cash received from clients

FY 2012
RM

FY 2013
RM

FY 2014
RM

FY 2015
RM

FY 2016
RM

1,398,452

815,112

906,489

1,007,003

1,117,571

3,979,390

4,377,329

4,815,061

5,296,568

5,826,224

(3,606,409)

(3,953,897)

(4,336,130)

Cash paid to suppliers and employees (2,980,938) (3,290,513)

Operating profit before working capital changes
998,452

1,086,816

1,208,652

1,342,671

1,490,095

400,000

(271,704)

(302,163)

(335,668)

(372,524)

Cash From / (To) Operating Activities

1,398,452

815,112

906,489

1,007,003

1,117,571

Cash From / (To) Investing Activities

709,990

(354,995)

(354,995)

(73,741)

(76,746)

(79,873)

(83,127)

(16,000)

(14,568)

(11,653)

(8,527)

(5,273)

338,995

(443,304)

(88,399)

(88,400)

(88,400)

1,737,447

371,808

818,090

918,603

1,029,171

Opening balance

1,737,447

2,109,254

2,927,344

3,845,947

Closing balance

1,737,447

2,109,254

2,927,344

3,845,947

18
4,875,118

Loan Received
Tax paid

Proceed from issuance of share from holding

Advances from shareholder
Repayment of advances to shareholder
Repayment of Loan (Principal)

Payment interest
Cash From / (To) Financing Activities
Net cash increase or decrease

REPAYMENT TABLE

19

LOAN REQUESTED,EXIT STRATEGY & GROWTH

STRATEGY

LOAN REQUESTED
Kitchen Equipment & Renovation RM615,000
One Month Operating Expenses RM116,000

EXIT STRATEGY
To sell the stall @ RM350,000 per stall

GROWTH STRATEGY
To follow the expansion Food Channel in the next Premium
Outlet i.e Penang and Sepang

20

THANK YOU

21